Is there a way I can get a loan even if I don't have genuine savings?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Is there a way I can get a loan even if I don't have genuine savings?

Post by Otto Dargan »

Hello Vincent.

Thanks for reaching out to us and welcome to the forums.

Banks and lenders tend to look for genuine savings so that they are assured that you’re able to save, make repayments and not default on your home loan repayments. However, some specialist lenders do provide no genuine savings loans as well.

If you meet the standard lending criteria, some lenders could allow you to borrow:
  • Up to 90% with no genuine savings irrespective of your deposit.
  • Up to 95% with some lenders but there are many conditions you'd have to fulfil like having a strong financial position, stable employment, excellent credit score, etc.
  • 100% if you have a guarantor, then you can borrow 100% of the purchase price and additional costs when getting the loan.
Please note that if you are borrowing above 80%, then you will also have to pay Lenders Mortgage Insurance (LMI)

You can use our genuine savings calculator to work out the amount you need.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a no genuine savings home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Is there a way I can get a loan even if I don't have genuine savings?

Post by Otto Dargan »

Yes, it is a possibility to get a 95% loan without genuine savings. Besides having stable employment, there are many other conditions you’d have to fulfil like:
  • A clear credit history with no defaults on your credit file.
  • The property you are buying is easily marketable, located in a postcode with no restrictions and is not an unusual property.
  • You have low levels of unsecured debt such as credit cards, personal loans etc.
  • Your income must be sufficient to cover the principal and interest repayment.
Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Is there a way I can get a loan even if I don't have genuine savings?

Post by Otto Dargan »

Not all no genuine savings loans are expensive.

Some lenders have the same rates and fees for no genuine savings loan if you're borrowing up to 90% of the property value.

If you're borrowing up to 95% of the property value, then you might be charged a higher LMI. As we have almost 40 lenders on our panel, we can usually find you a lender with competitive interest rates and a cheaper LMI premium.

LMI stands for Lenders' Mortgage Insurance. It is a one-off payment that you pay when you borrow over 80% of property value.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a no genuine savings mortgage.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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